CMS Announces Nationwide DMEPOS Temporary Enrollment Moratorium
CMS posted an “Announcement of Nationwide Temporary Moratoria on Enrollment of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Supplier Medical Supply Companies” on 2/27/2026. CMS confirmed with CHAP that the effective date of the moratorium is 2/25/2026.
- The moratorium will remain in effect for 6 months. However, it may be extended in 6-month increments if CMS deems it necessary.
- The moratorium does not restrict AOs from providing accreditation services.
Under its authority at § 424.570(a)(2)(I) and (a)(2)(iv), CMS is implementing a nationwide temporary moratorium on the Medicare enrollment of medical supply company DMEPOS suppliers nationwide related to longstanding program integrity problems within the overall DMEPOS Supplier space. With more than 79,000 DMEPOS suppliers of all types currently approved nationwide, CMS data analysis indicates that the current supplier network adequately supports beneficiary needs without compromising access or the quality of care.
The DMEPOS supplier enrollment moratorium will allow CMS to explore additional safeguards to further mitigate longstanding instances of fraud, waste, and abuse perpetrated by certain DMEPOS companies.
CMS also plans to publish information on providers/suppliers whose participation in the Medicare program has been revoked, including their National Provider Identifier and the reason for the revocation. This additional transparency will allow patients and payers, including private insurers, to understand which providers have been subject to such administrative enforcement action by the government.
Moratorium Rationale
CMS noted in the CY 2026 HH PPS proposed rule (July 2, 2025, 90 FR 29108) that DMEPOS fraud, waste, and abuse have long been major concerns, risking significant taxpayer funds and patient safety through unnecessary or poor-quality items. Multiple OIG reports since 1998 have highlighted payment safeguard issues with DMEPOS suppliers.
Therefore, CMS has determined that medical supply companies have significant potential for fraud, waste, or abuse. Accordingly, and also given the recent nationwide trends of OIG and DOJ investigating and charging owners of DMEPOS suppliers across the country for fraudulent billing schemes, we believe that a moratorium on the enrollment of medical supply companies into Medicare could assist in stemming this activity.
Scope of DMEPOS Medical Supply Company Moratorium
Starting on 2/26/2026, Medicare will not enroll any new DMEPOS suppliers or new practice locations for the specified seven types below, unless the enrollment application was received before the notice’s effective date. This moratorium applies nationwide, including all states, territories, and the District of Columbia.
Note: The moratorium applies to initial applications. This includes non-exempt changes in majority ownership (CIMOs) under 42 CFR § 424.551. Any such application submitted by medical supply companies after the implementation of the moratorium will be denied.
The following categories are subject to the moratorium because of their considerable risk for fraud, waste, and abuse:
- Medical supply company.
- Medical supply company with orthotics personnel.
- Medical supply company with pedorthic personnel.
- Medical supply company with prosthetics personnel.
- Medical supply company with prosthetic and orthotic personnel.
- Medical supply company with registered pharmacist.
- Medical supply company with respiratory therapist.
Exclusively for purposes of the moratorium’s applicability, a medical supply company is considered a business whose principal function is to furnish DMEPOS supplies (regardless of supply type) directly to another party, such as, but not limited to:
- beneficiaries with a medical order (for example, via mail order);
- medical providers and suppliers; or
- both.
Example: A grocery store’s pharmacy, or inpatient or outpatient medical provider’s principal function is typically not the provision of DMEPOS.
- Activities such as selling food or toiletries, dispensing medications, or providing direct medical care (including hospitals, home health agencies, or physician offices) are excluded. Therefore, the moratorium typically does not apply to these DMEPOS suppliers.
For the included medical supply types requiring specific personnel (for example, prosthetics personnel), the supplier – again, for moratorium purposes only – has at least one such individual serving in an employment, advisory, contractual, or other role; thus, a “medical supply company with orthotics personnel” would be a medical supply company with at least one orthotic professional in one of the roles noted previously (such as advisory).
CMS DMEPOS Scrutiny
CMS will closely screen all DMEPOS supplier applications submitted during the moratorium to ensure that the supplier is not a medical supply company. This will include, but not be limited to, site visits and online research of the business. They also note that under § 424.530(a)(4) and (f), they have the authority to deny enrollment and impose a reapplication bar of up to 10 years for a provider’s or supplier’s submission of false or misleading information on (or omission of information from) the enrollment application in order to gain enrollment in the Medicare program. CMS cites similar grounds for revoking a provider’s enrollment for the submission of false or misleading information, and under § 424.535(a), we can impose a reenrollment bar of up to 10 years.
Change in Ownership
- CMS notes that under § 424.551, a DMEPOS supplier that undergoes a nonexempt change in majority ownership (CIMO) within 36 months of its initial enrollment (or within 36 months of its most recent CIMO) must enroll in Medicare as a brand-new supplier, undergo a survey, and become newly accredited. The supplier’s current enrollment is terminated.
- This means that the supplier’s new enrollment is an initial enrollment no less than if the supplier had never enrolled in Medicare before.
- The moratorium would prohibit the supplier in this § 424.551 situation from reenrolling in Medicare because, again, it would constitute an initial enrollment; the supplier is “new.” The aforementioned moratorium exemption under § 424.570 for changes of ownership does not apply to such a scenario.
Application to Medicaid and CHIP
At this time, CMS believes it is in the best interest of Medicaid and CHIP beneficiaries across the country to allow each state to decide whether some form of a DME moratorium is appropriate for their respective Medicaid and CHIP programs, and the scope of any such moratorium.
- CMS states that each state has greater expertise and experience with their pool of DME provider types — including the requirements for each type of DME provider — than CMS. Nevertheless, they encourage each state to, as appropriate, implement a DME provider moratorium tailored to the specifics of their beneficiary population, as well as any geographic considerations.
- CMS is offering every state and territory the opportunity to consult with CMS on the prospect of implementing a Medicaid- or CHIP-based (or both) DME moratorium in their jurisdictions.
Providers are strongly encouraged to review the entire content of the notice, as not all detailed information is included in this summary.
Questions about the content of this rule? Contact CHAP
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